When San Francisco outlawed free toys with meals that don't meet certain nutritional requirements, the McDonald's Happy Meal looked set to become a bit less happy there. But Ronald and Co. have cooked up a clever solution.

For more than 30 years, the standard McDonald's Happy Meals have been exactly the same -- a burger or chicken nuggets, fries and a soda. But no more. In an attempt to help youngsters make healthier food choices, the fast food chain is making big changes to its kid's-meal-in-a-box.

If you haven't seen Ronald McDonald around much these days, there's a reason for that. Facing increased competition from more upscale chains, McDonald's is more focused these days on selling profitable coffee drinks and salads, downplaying their namesake clown, who is more associated with Big Macs and Happy Meals.

Forget California's huge budget deficits, high unemployment levels and nasty political campaigns. One of the most polarizing issues in the Golden State today is about a proposal to ban Happy Meals toys in San Francisco.

McDonald's recall of tainted Shrek glasses is an unusual reminder of the downsides to America's love affair with the Golden Arches. And as McDonald's fights to avoid blame for a share of the obesity epidemic, the last thing it wants is more scrutiny of how it markets fast food to kids.